Gold prices were bound for their biggest monthly gain in four on Monday as expectations grew that major global central banks may be nearing the end of current monetary policy tightening cycles.
Spot gold was down 0.2 percent at $1,954.79 per ounce, while US gold futures slipped 0.4 percent to $1,953.80 per ounce.
“Markets feel vindicated with their assessment that Fed rates are at or near their terminal rate, with key inflation reports from the US all pointing towards a faster pace of disinflation,” said Matt Simpson, a senior market analyst at City Index.
“That has worked wonders for gold since it found support around $1,900,” Simpson said, noting that the market remained in a part of the year usually associated with choppy price action and less stable returns.
Gold prices were set to end the month about 1.8 percent higher, the most since March, as expectations that US interest rates could be nearing their peak put the dollar on track for its second straight monthly decline. – Reuters
